Monday, February 15, 2010

How to Inflame a Situation

Philips executives must not have taken Industrial Relations 101. After locking employees out of the firm's factory in Dreux, the company announced that they could have jobs in Hungary at 450 euros per month but only if they learned Hungarian. Le capitalisme au visage inhumain ...

2 comments:

kirkmc said...

I'm not sure, but I think they are required by law to offer them jobs in the delocalized facilities.

Anonymous said...

Companies are obliged by law to offer alternative employment opportunities. Knowledge of the local language is just one impediment for French employees of Philips; the other is a salary and other benefits at Hungarian conditions. By structuring their proposals in a way to make acceptance practically impossible, these companies are discharged of their obligations and the state picks up the tab. Philips is far from the first to have used this ploy: other companies bent on delocalizing, often previously receiving enticements from France like tax breaks and subsidies from the French regional authorities or Brussels, have offered jobs in such workers' paradises as Poland, Turkey, Romania, Thailand, etc. Interestingly enough, several companies having shipped production facilities overseas in recent years have returned to France with their tail between their legs as lower wages did not make up for low productivity, inefficient transport (which puts some kinks in just in time manufacturing) and corruption of local administrations in these faraway outposts.